U.S. President Barack Obama and Republican challenger Mitt Romney are set to meet Tuesday evening for their second debate as Election Day looms three-plus weeks out. Obama and Romney are vying to steward the globe's largest economy, which has emerged as a central theme of the presidential election.
"Gold is taking a breather ahead of the debate and should Romney emerge stronger, people are worried there may soon be talks about an expiration date for QE3," futures specialist Sterling Smith with Citigroup Inc.'s institutional client group in Chicago told the news source, referencing the third round of quantitative easing, the U.S. central bank effort to support the U.S. economy. "The slowdown concerns continue to put pressure on the entire commodity pack."
At 10:34 a.m. on Monday, gold futures dropped 1.56 percent, a $27.40 loss to $1,732.30 per troy ounce.
Reuters reports the precious metal fell to its lowest price in nearly three weeks on Monday after the steep drop.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.